Earnings Review
Tata Comm consol PAT jumps on INR 5.8-bln one-time gain
This story was originally published at 19:53 IST on 22 April 2025
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--Tata Comm Jan-Mar consol net profit INR 10.40 bln
--Analysts saw Tata Comm Jan-Mar consol net profit INR 3.21 bln
--Tata Comm Jan-Mar consol net profit INR 10.40 bln vs INR 2.36 bln qtr ago
--Tata Comm Jan-Mar consol revenue INR 59.90 bln vs INR 57.98 bln qtr ago
--Tata Comm to pay INR 25 per share final dividend
--Tata Comm FY25 consol net profit INR 18.36 bln vs INR 9.68 bln year ago
--Tata Comm FY25 consol revenue INR 231.09 bln vs INR 207.85 bln year ago
--Tata Comm Jan-Mar consol EBITDA INR 11.22 bln vs 10.76 bln year ago
--Tata Comm Jan-Mar consol EBITDA margin 18.7% vs 19.1% year ago
--Tata Comm Jan-Mar voice solutions sales INR 3.74 bln vs INR 4.11 bln qtr ago
--Tata Comm Jan-Mar data svcs sales INR 51.22 bln vs 49.17 bln quarter ago
--Tata Comm: One-time income of INR 5.78 bln in Jan-Mar
By Arya S. Biju
MUMBAI – Tata Communications Ltd. reported robust earnings for the March quarter, with both the bottom line and top line beating analysts' expectations. The company's bottom line rose over four times sequentially, boosted by a one-time income of INR 5.78 billion. Its top line for the quarter saw a low single-digit rise, driven by growth in its data services segment.
The telecommunications company's consolidated net profit quadrupled on quarter to INR 10.40 billion, beating analysts' expectation of INR 3.21 billion by a wide margin. Even after discounting the INR 5.78-billion one-time gain, the company's net profit was INR 4.62 billion, comfortably above analysts' estimates. The company's top line rose 3.3% on quarter to INR 59.90 billion, beating analysts' expectation of INR 59.73 billion. This marked the third consecutive quarter of sequential revenue growth for the company.
The company's one-time income of INR 5.78 billion for the quarter is the net proceeds of INR 6.60 billion from the sale of its properties, including one in Ambattur, Chennai, after accounting for an expense of INR 820.5 million on account of staff cost optimisation, Tata communications said.
On a year-on-year basis, the consolidated net profit more than tripled, while the consolidated revenue rose over 6%. For the financial year ended Mar. 31, the company reported a consolidated net profit of INR 18.36 billion, up over 89% on year. Its consolidated revenue for the same period was INR 231.09 billion, up 11.2% on year. The company had a one-time income of INR 6.91 billion for 2024-25 (Apr-Mar). Of this, INR 1.86 billion was on account of an interest write-back with respect to variable licence fees and INR 7.33 billion was on account of the sale of its properties.
"FY25 was a year of sustained growth despite challenging global macroeconomic conditions, especially with large deal wins and increased adoption of our digital fabric," Managing Director and Chief Executive Officer A.S. Lakshminarayanan said in a press release. The company's continued investments across networks, cloud, security, internet of things, and its interaction fabric had led to strong growth in its digital revenues, he added.
The company's total expenses rose over 5% on quarter to INR 57.23 billion. This was led by a nearly 8% sequential rise in its network and transmission expenses, which accounted for more than 47% of the company's total expenses. Depreciation and amortisation expenses rose nearly 6% on quarter, while employee benefit expenses rose 1.1% sequentially. Finance cost for the quarter fell over 2% to INR 1.82 billion. The company also reported a tax expense of INR 1.76 billion for Jan-Mar, up over 39% on quarter.
The company's other income more than doubled sequentially to INR 688 million in Jan-Mar. Its consolidated earnings before interest, tax, depreciation, and amortisation for the quarter was INR 11.22 billion, up 4.3% on year. This was, however, below analysts' expectation of INR 12.17 billion. The company's EBITDA margin for the quarter was 18.7%, down 33 basis points on year. The net profit margin for the quarter rose 643 basis points to 12.7%.
Revenue from the company's data services segment, which includes core connectivity services and digital platforms and connected services, rose over 4% on quarter to INR 51.22 billion in the March quarter. The data services segment contributed over 85% of the total sales of the company. Its voice solutions sales, on the other hand, fell nearly 9% on quarter to INR 3.74 billion.
The company announced its Jan-Mar earnings after market hours on Tuesday. Along with the financial results, the company also announced final dividend of INR 25 per share for 2024-25. Shares of the company closed at INR 1,598.70 on the National Stock Exchange, up 1.6%. End
US$1 = INR 85.19
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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